Looking for free forex signals? Today we look at the NZD/JPY instrument and have entry and stop levels for a buy trade.
Yesterday was bullish for NZD/JPY – and also for AUD/JPY. Traders were happy to jump back in to resume the profit-hunting with the carry trades, and these days the NZD and AUD are very much part of the Asia-Pacific carry trade scene.
It looked last week as if those days of profiting on the difference between rates in low-interest USD and JPY as against Asia-Pacific economies and currencies, might be over. But the Fed’s rebalancing of expectations with the reiteration of its commitment to a dovish stance on monetary policy and setting its face against bringing forward a rate rise or asset purchase tapering, has put tightening fears back in their box.
With the reflation trades picking up again and equities generally looking good, even though they are trading at all-time highs in the advanced economies, it means safe haven currencies are being sold.
As a consequence, the Japanese yen and the Swiss Franc have had a visit from prowling bears, and that is grist to the mill for NZD/JPY.
US dollar off the pace but not a bearish reversal
NZD/USD has rebounded this week. Meanwhile, after last week’s gains, the dollar index has not managed to catch a bid, but neither has it declined to take back all of the recent gains. For now it languishes below the 20MA but we would expect the bulls will be coming out to play soon enough, so this is no bearish reversal
New Zealand is well on the road to economic recovery, with data last week confirming this to be the case. GDP was up 1.6% in the first quarter beating forecasts of anywhere between 0.5 (Reuters poll of economists) and a prediction of a very wide of the mark fall of 0.6% by the central bank, the Reserve Bank of New Zealand.
The Asia Pacific country has largely kept Covid out of the country, which has allowed it to reopen its economy much faster than many other advanced economies.
Such has been its success, Westpac Bank estimates that economic growth is currently 0.8% above pre-pandemic levels, with employment growth and consumer spending both driving the rebound.
Now let’s get to our free forex signal:
Free forex signals: NZD/JPY Buy-Stop
Instrument: NZD/JPY
Order: BUY STOP
Entry price: 78.398
Stop Loss: 77.882
TP1: 79.168
Recommended Risk: 1%
Risk / Reward Ratio: 1:1.5
Signal validity period: Good until cancelled
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